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Why ‘Level Playing Field’ Arguments for Terrestrial Networks Don’t Apply to Satellite Services

Assigning satellite spectrum fairly and at reasonable costs will protect consumer interests in India, fostering more affordable and innovative services.

Parag Kar by Parag Kar
10 Nov, 2024 - Updated On 11 Nov, 2024
in Satellite Spectrum Policy
Reading Time: 7 mins read
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On November 8, 2024, the TRAI convened a consultation on this pressing issue. Though I was not in attendance, anyone with a grasp of India’s telecom sector can envision the dynamics of such an open house. The scene would be all too familiar for those who recall the fierce market-entry battles—whether it was the struggle over WLL services in 2003, the introduction of new 2G players in 2008, or the seismic disruption brought by RJIO from 2016 to 2018. In each instance, incumbent operators mounted fierce resistance against fresh competition, employing both rational arguments and wildly irrational tactics. Some points were well-founded, while others teetered on the edge of the absurd—ironically, these same tactics were later adopted by once-new entrants to ward off subsequent challengers and entrench their market dominance. Such clashes frequently spiraled into high-octane debates, where volume and rhetoric often drowned out thoughtful discourse.

In this note, I will focus strictly on the facts, avoiding deep dives into technical intricacies to keep the discussion straightforward. My emphasis will be on the core issue: the recurring pattern of incumbent operators using familiar tactics to block new entrants—tactics they themselves once opposed before becoming entrenched market leaders. I will also highlight the role of the regulator, who often took a passive stance, allowing these conflicts to persist unchecked. This inaction led to a market frequently devoid of vibrancy and genuine competition, ultimately depriving consumers of the benefits of improved services and innovation driven by healthy market dynamics.

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Tags: Consumer BenefitFixed Wireless AccessIncumbent OperatorsIndian Telecom SectorLevel Playing FieldMarket DynamicsMarket EntrantsRegulatory BarriersRegulatory ReformSatellite ServicesSpectrum AllocationTelecom AuctionsTelecom CompetitionTelecom Regulatory ChallengesTRAI
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